In a chat with ET Now, Charath Narasimhan, CEO, Indian Terrain Fashions says," We are seeing very good traction in the online space for the brand across third party channels and now with our own e-commerce platform." Edited excerpts:

ET Now: Currently what is the demand scenario which one is seeing in the retail space? Are you completely over the demonetisation impact? What is it that you are seeing on ground?

Charath Narasimhan: The effects of demonetisation are pretty much over. We are seeing a pickup in demand from the middle of March onwards in terms of growth rates over where we were last year same time. It looks anywhere in the range of 10-15% in the early part of the season. But by and large on retail front, we are seeing sufficient pick up happening across the board.

ET Now: Could you identify the key growth drivers that you have for next two or three years?Charath Narasimhan: Yes. So if you look at the big drivers for growth the way we are seeing it, retail expansion is going to be a very big driver for us. We have a very large pipeline of enquiries coming in from franchises all across the country. So we see ourselves adding anywhere between 80 to 100 stores over the next three years. So retail is going to be a big push. That apart, we are seeing very good traction in the online space for the brand across third party channels and now with our own e-commerce platform, so we see that as another big opportunity on which growth is going to come. I am sure you are aware that we launched a segment of boys. We extend the brand into boys as a segment about 18 months back. The feedback, the traction has been very strong and based on that we see that segment at least doubling over the next two to three years time. So these are going to be three big initiatives -two on the men which is our core business and one big extension into the boys segment which are going to really be the drivers for revenue growth for us over the next 24-36 months.

ET Now: And what is the update on the expansion front, any targets that you have set for FY18 and what kind of investments that you may be looking at?Charath Narasimhan: So I think based on what we are seeing currently in terms of sales growth, revenue growth as well as distribution expansion, we are fairly confident of doing anyway between an 18% to 20% revenue growth over the next year or so and that is going to come on the back like I said earlier on retail expansion. So we have a target of about 20-25 stores for next year. We are almost half way there already in terms of the signs up that we have. So we are pretty sure that we will end up the year as per our targeted numbers.

ET Now: You saw continued momentum in your e-tail sales. Quarterly revenue of about nine crore. How things panning out there?Charath Narasimhan: Oh yes absolutely. In fact, based on the discussions that we have been having with our key partners – Myntra, Amazon and the Flipkart Group, we see an opportunity to potentially go 50% up from where we are today over the next 12 months. So that is the kind of momentum that we are seeing and they are seeing as well in the data that they have shared with us. So both teams are actually sitting and putting out a plan to kind of hit that kind of revenue growth over FY18.

ET Now: Leave us with the projections that you may have for FY18 in terms of your margins and what you hope to do in terms of PAT.Charath Narasimhan: So on revenue, definitely like I said we are pretty confident of doing about a 20% outgrowth at least. On margins, we will continue to maintain or slightly improve from where we are. We really do not put out specific margin forecasts but from where we will, we are likely to end for this fiscal, I certainly see a similar maintaining or an improvement on that if at all.

Sachin Bansal, Binny Bansal, sales director Hari, accounts managers Sumit Anand and Sharauque among other employees have been named in the FIR registered on the basis of a complaint lodged by Naveen Kumar, owner of Indiranagar-based C-Store Company.